IndusInd Bank shares climb over 2 pc

New Delhi, May 29 (PTI) IndusInd Bank's stock climbed over 2 per cent on Thursday, a day after Sebi barred the firm's former CEO, Sumant Kathpalia, and four other senior officials from accessing the securities markets in connection with an alleged insider trading in the bank's shares.

The company's stock went up by 2.41 per cent to settle at Rs 824.15 apiece on the BSE. During the day, it advanced 2.71 per cent to Rs 826.60.

On the NSE, it climbed 2.46 per cent to Rs 825 a share.

The stock emerged as the biggest gainer among the Sensex and Nifty firms.

In addition to the market ban, Sebi has impounded Rs 19.78 crore collectively from the five individuals, according to an interim order passed by the regulator on Wednesday.

The other officials of IndusInd Bank Ltd (IBL) restrained by Sebi are Arun Khurana, who was Executive Director and Deputy CEO at the time of the alleged violation; Sushant Sourav, Head, Treasury Operations; Rohan Jathanna, Head, GMG Operations; and Anil Marco Rao, Chief Administrative Officer (CAO), Consumer Banking Operations.

These senior executives allegedly traded in IndusInd Bank shares while in possession of unpublished price-sensitive information (UPSI) related to discrepancies in account balances of the bank's derivative portfolio. By doing so, they violated insider trading regulations.

"During the preliminary examination conducted by Sebi, on the basis of the evidence collected so far, it is prima facie seen that all noticees traded in the scrip being aware of the UPSI related to the discrepancies and averted/avoided huge losses," the regulator said in its 32-page order.

The case originated from a Master Direction issued by the Reserve Bank of India (RBI), which had a significant operational and financial impact on IndusInd Bank. PTI SUM SUM SHW